q20. the goodwill reported at acquisition date is: Unforgettable Company acquired the net assets of Tua Company (100,000 outstanding sh) by issuing 100,000 of its P10 par valueordinary shares with quoted price of P18. On the same date, USO Co. purchased 100,000 shares of Geronimo Company (250,000outstanding sh) by paying P1,500,000. Balance sheet of Tua and Geronimo Companies at acquisition date were as follows:Tua CompanyP 300,0001,400,000P1,700,000Geronimo CompanyP 400,0001,000,000P1.400,000Current AssetsNoncurrent assetsTotal AssetsLiabilitiesOrdinary Share CapitalTotal Lilabilities and CapitalP 500,0001,200,000P1,700,000P 150,0001,250,000P1,400,000The noncurrent assets of Tua Company include Goodwill with book value and fair value of P200,000. Other than the overvaluationof Geronimo's inventories by P200,000, book value of the assets and liabilities of Tua and Geronimo equal their fair values.Unforgettable Company paid P40,000 legal and consultant's fees and P10,000 general administrative costs.

Note : We have assumed that no entry has been passed by Unforgettable company (transferee) for…

Unforgettable Company acquired the net assets of Tua Company (100,000 outstanding sh) by issuing 100,000 of its P10 par value ordinary shares with quoted price of P18. On the same date, USO Co. purchased 100,000 shares of Geronimo Company (250,000 outstanding sh) by paying P1,500,000. Balance sheet of Tua and Geronimo Companies at acquisition date were as follows: Tua Company Geronimo Company P 400,000 1,000,000 P1.400,000 Current Assets P 300,000 Noncurrent assets 1,400,000 P1,700,000 Total Assets P 500,000 1,200,000 P1,700,000 P 150,000 1,250,000 Liabilities Ordinary Share Capital Total Liabilities and Capital P1.400,000 The noncurrent assets of Tua Company include Goodwill with book value and fair value of P200,000. Other than the overvaluation of Geronimo's inventories by P200,000, book value of the assets and liabilities of Tua and Geronimo equal their fair values. Unforgettable Company paid P40,000 legal and consultant's fees and P10,000 general administrative costs.

Unforgettable Company acquired the net assets of Tua Company (100,000 outstanding sh) by issuing 100,000 of its P10 par value ordinary shares with quoted price of P18. On the same date, USO Co. purchased 100,000 shares of Geronimo Company (250,000 outstanding sh) by paying P1,500,000. Balance sheet of Tua and Geronimo Companies at acquisition date were as follows: Tua Company Geronimo Company P 400,000 1,000,000 P1.400,000 Current Assets P 300,000 Noncurrent assets 1,400,000 P1,700,000 Total Assets P 500,000 1,200,000 P1,700,000 P 150,000 1,250,000 Liabilities Ordinary Share Capital Total Liabilities and Capital P1.400,000 The noncurrent assets of Tua Company include Goodwill with book value and fair value of P200,000. Other than the overvaluation of Geronimo's inventories by P200,000, book value of the assets and liabilities of Tua and Geronimo equal their fair values. Unforgettable Company paid P40,000 legal and consultant's fees and P10,000 general administrative costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q.29.